News Releases

To the Press
Daiwabo Information System Co., Ltd.
DIS Solution Co., Ltd.

Development of "Textile Production System" and Business Expansion in Japan and Asia by Daiwabo Information System Group Company DIS Solution

On April 1, DIS Solution Co., Ltd. *1 (DSol; headquarters: Shinagawa-ku, Tokyo; President and CEO: Sachio Takai), group company of Daiwabo Information System Co., Ltd. *2 (DIS; headquarters: Chuo-ku, Osaka; President and CEO: Hirokazu Matsumoto), launched a "Textile Systems Group" to aggressively provide IT proposals to the textile industry. As their first product, they developed a "Production Management System Package for Textile Production" which they are proposing not only to domestic companies but also industries in China and Southeast Asia where the textile industry is growing markedly.

DIS Solution (DSol) was established as the solution wing of Daiwabo Information System (DIS) in October 2004 and is mainly involved with network building and system development. DIS was established in Aril 1982 as part of non-textile business expansion efforts by Daiwabo Co., Ltd. While developing systems for personal computers, office equipment and factory automation, DSol has proposed, delivered and installed about 100 "Monitoring Systems" (DLM) in the textile industry with particular emphasis on woven fabrics. With weaving machines, they have delivered over 8,000 systems and continue to provide maintenance and proposals. Several are in operation in Indonesia and China.
Wanting to add to those results, DSol newly established a "Textile Systems Group" and their first product is a package production management system that links with weaving machine monitoring systems, which they are aggressively proposing inside and outside Japan. This same product will be exhibited and proposed to visitors at JIAM 2005 OSAKA when the show opens from May 18∼21 at Intext Osaka.

1. Why the Textile Industry Now?
The domestic textile industry -- that is to textile production -- is in a tough situation because of the onslaught by China and India, yet it employs 680,000 people, accounting for 7% of the workforce in all manufacturing industries, and provides an added-value of ¥340 million or 3.1% of all manufacturing, making it a major industry. The industry is strongly rooted in certain areas such as Ishikawa and Fukui (approx. ¥517.5 billion in shipping or 12% of all manufacturing in the same area), Southern Osaka (approx. ¥248.9 billion in shipping or 15.6% of all manufacturing in the same area), and Fukuoka approx. ¥302.2 billion in shipping or 4.8% of all manufacturing in the same area), and contributes greatly to the local economies of these areas. (Source: "New Textile Vision" announced in July 2003)
As the future direction of IT development, the "New Textile Vision" indicates that (1) SCM (Supply Chain Management) between apparel producers and retailers will move into the mainstream via IT, and (2) mainstream small and medium size retailers involved with SPA will share retail information in real-time. These two points are opening eyes to centralized management of product planning, development, production and sales.
Moreover, amidst the competition from places like China, the biggest topic for mainstream industries dealing primarily in weaving and knitting is how to propose products of high added-value in a timely fashion.
Given the potential and the higher level of customer needs, DSol has set mainstream businesses of the textile industry as the main target and is first intent on dedicating energies to proposing production management systems for weaving processes. This segment of the industry recognizes flexible production and the use of information in a way that effectively utilize manufacturing manpower, supplies and resources as the means for meeting customer demands for higher added-value products. It is through the use of information that they can reduce production costs and shorten delivery time, and put themselves in a position to propose solutions to customer needs.

2. Development Policy
Plans for development will utilize not only DSol's base but also DIS with its roughly 80 offices across Japan from Hokkaido to Okinawa, and the full network of the DIS Group.
Currently, plans are being marketed with businesses that have already introduced weaving machine monitoring systems and operations are underway to introduce these basic concepts to businesses in select production areas. Preparations for development are moving forward and inquiries have been received from several customers.
Projected sales for the first year are ¥100 million and will increase further from the following year forward.
As PR for new potential customers, the product will be shown at JIAM 2005 OSAKA from May 18 ∼ 21. This will include a system description, a demonstration of a fabric inspection system connected to a current weaving machine monitoring system and introductions of example connections with host systems.
DSol positions this business as a core business and, therefore, plans to visit customers not only in Japan but also in China and Southeast Asia to explore the possibilities of new customers and expanded sales.
Marketing plans not only are targeting the weaving industry but also dyeing and processing industries and downstream apparel and sewing industries. Efforts to find new customers also bring alliances and EDI connections with other management groups into view.

3. System Description
The objective is to build a system that allows sales managers to create an interface for talking with customers, providing sound solutions and gaining the customer's trust. The system uses the following information to introduce SCM (Supply Chain Management) into weaving processes, improve customer value (quality products and short delivery) and customer satisfaction (solid understanding of resources) while lowering costs, and enhance the efficiency of equipment and human resources.
(1) Production and delivery
(2) Beginning stage
(3) Finishing time
(4) Planning stage
(5) Inventory status
Plans are to develop this system for introduction in steps and market the system by toting the benefits of each stage.

*1 DIS Solution Co., Ltd.
DIS group company specialized in system integration
Provides everything from system consulting to network building and equipment installation, operation and maintenance regardless of manufacture. ISO9001 certified.

*2 Daiwabo Information System Co., Ltd.(DIS)
Code No. 9912, First Section of Tokyo Stock Exchange/Osaka Securities Exchange
Largest independent PC dealer in Japan
Multivendor with procurement channels to prominent PC and peripheral manufacturers and the strongest presence in Japan (80 sales points and 13 distribution centers).

DIS Solution Co., Ltd.
General Affairs Sect.
Masaya Ono
PHONE: +81-3- 6429-6088
Daiwabo Information System Co., Ltd.
General Affairs Dept Administration Sect.(Public Relations)
Koyama (Yoshio)
PHONE: +81-6-6281-9100
FAX: +81-6-6258-9351

April 22, 2005